Online Video Industry Forecast 2012: ChinaCache
WebM will win the codec war, and CDNs will license video transcoding solutions in response
[This sponsored article appeared in the December 2011/January 2012 issue of Streaming Media magazine.]
The codec war will be finally won by WebM in 2012. With Android phones dominating the market, and Flash fading away from the smartphones, it is the the mobile world that will drive the adoption of new open standards in all devices including notebooks and desktops. Microsoft will have to introduce native support for WebM in IE9 and not rely on third-party plugins to deliver the functionality of other major browsers.
The content providers will need to adjust to the new reality by either encoding their video streams in VP8 or implementing on-the-fly or offline transcoding solutions. While major players such as Brightcove and Ooyala enthusiastically supported the WebM launch back in 2010, they were slow in providing transcoding into VP8, still relying on a universal adoption of H.264. This might present a great business opportunity for small companies such as Zencoder and Kaltura.
CDNs (or content-aware network services, as we describe the business of our company) will license video transcoding solutions or establish partnerships to deliver seamless flexible video delivery options for their customers. Such services will further advance the adoption of new technologies by major content providers worldwide.
Innovation with a Chance of Standards